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2013 MarsdenLR 2248

HIGH COURT MALAYA TAIPING
ONG SIEW HWA – Appellant
Versus
UMW TOYOTA MOTOR SDN BHD & ANOR – Respondent
[Civil Trial No: 22-25-06/2011]



The Consumer Protection Act 1999 provides consumers with the right to redress for defects in goods, including within hire purchase agreements, ensuring goods must meet acceptable quality standards.

Headnote:(A) Consumer Protection Act 1999 - Sections 2, 32 and 47 - Sale of Goods Act 1957 - Implied terms of quality - Plaintiff purchased a car from the 1st Defendant with persistent defects, leading to an action for return of the purchase price and damages. The Court found the car unfit for purpose and established a hire purchase context for the transaction. (Paras 1, 58, 60)

(B) Hire Purchase Agreements - The Court ruled that the sale transaction did not fade upon the execution of the hire purchase agreement with the 2nd Defendant, affirming that the Plaintiff retains rights against both parties regarding defects. (Paras 30, 41)

Facts of the case:
The Plaintiff obtained a Toyota Camry, immediately encountered issues with defects, and repeatedly sought repairs from the Defendants over several months without resolution. (Paras 1-18)

Findings of Court:
The Plaintiff is a consumer protected under the Consumer Protection Act, with the vehicle found to be of unacceptable quality, thus entitled to a refund and damages. The nature of the transaction was determined to be hire purchase, allowing continued claims against the 2nd Defendant. (Paras 62, 63)

Issues: The Court addressed whether the vehicle was of satisfactory quality, whether losses had occurred, and the privity of contract with the Defendants. (Paras 27, 28)

Ratio Decidendi: The Court asserted that despite the hire purchase nature of the transaction, consumers are protected against defective goods under applicable consumer legislation, affirming the right to seek redress for poor quality goods. (Paras 60, 62)

Result: Plaintiff's claims against the 1st Defendant dismissed; claims against the 2nd Defendant allowed, ordering a refund and damages.

Judgement Key Points

Key Points: - The Plaintiff purchased a car and sought return of purchase price and damages for defects; court found car not of acceptable quality and unfit for purpose under Consumer Protection Act 1999. [Paras 1, 62, 63] - The transaction was determined to be a hire purchase, and the Plaintiff retained rights against both the 1st Defendant (seller) and the 2nd Defendant (finance provider) regarding defects. [Paras 30, 41, 62] - Plaintiff entitled to a refund and damages against the 2nd Defendant; 1st Defendant’s claims dismissed. [Paras 62, 63] - Vehicle defects included persistent issues with steering alignment, wheel balance, absorbers/tyres changes, and unresolved service centre repairs. [Paras 8, 10, 11, 12, 16, 17, 18] - Plaintiff paid RM71,706.45; sale price RM151,706.45; purchase related to Toyota Camry 2.0G. [Paras 5, 6] - Timeline: delivery on 22 March 2010; complaints from day of collection; multiple service visits; police report; service centres in Taiping and Ipoh. [Paras 7, 9, 10, 11, 12, 13, 15, 16, 17, 18] - Court’s ratio: consumer protection over defective goods; rights to redress despite hire purchase context. [Paras 60, 62]

What is the right of a consumer under the Consumer Protection Act 1999 in relation to defective goods purchased under hire purchase agreements?

What is the legal effect of hire purchase in a sale of goods context with respect to privity of contract and rights against multiple parties?

What are the remedies awarded to the plaintiff for defects in the car and unfit for purpose findings?


Table of Content
1. plaintiff's car purchase and subsequent issues. (Para 1 , 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
2. defendants assert hire purchase agreement. (Para 2)

[1] This is a classic case where, instead of brining joy and pride, the new vehicle brought in misery and many sleepless nights much like the reverse of what was said by Khalil Gibran that "your joy is your sorrow unmasked". In this case, as the facts unfold, the Plaintiff's anticipated joy of acquiring a new vehicle was short-lived. The happiness that was sought never came and instead of unlocking the key to the happiness the Plaintiff unmasked problem and found sorrow the very day he collected the car. Unhappy with his newly acquired happiness which turned to nightmare the Plaintiff launched the action herein. He sought redress from this Court for the return of the purchase price of new Toyota Camry 2.0G car amounting to RM151,706.45 and damages suffered by him as a result of the breach of implied guarantee as to acceptable quality and fitness for the purpose on the part of the Defendants.

[2] The trial commenced and the witnesses who testified for the Plaintiff were as follows:

Witnesses

The witness who gave evidence for the 1st Defendant is as follows:-

And the witness who testified for 2nd Defendant is as follows:

The Plaintiff's Case

[3] The Plaintiff's narrative of the facts is fairly straightforward. He said he wanted to buy a car of Toyota make, more specifically a Camry. So he approached the 1st Defendant being the supplier, importer, distributor and manufacturer of Toyota vehicle in Malaysia. He then identified the colour the model and all the requisite specifications. He was told that a financing can be arranged by the 1st Defendant with the 2nd Defendant being an associate company having same registered address with the 1st Defendant and provides credit facility to the purchasers of vehicles supplied by the 1st Defendant.

[4] The 1st Defendant with the consent of the Plaintiff arranged for a credit facilities from the 2nd Defendant which, as stated earlier, is an associated company under UMW group for a sum of RM80,000.00. The Plaintiff then entered into Hire Purchase Agreement with the 2nd Defendant on 22 March 2010 (Exh. P5).

[5] The Plaintiff paid a sum of RM71,706.45 to the 1st Defendant (exh. P2 and P4).

[6] On 19 March 2010 the 1st Defendant issued vehicle invoice No: 028Y004207 for the sale of a new Toyota Camry 2.0G bearing car registration No. AHC 9928 for the purchase price of RM151,706.45 to the Plaintiff (Exh.P3).

[7] The 1st Defendant delivered the said car to the Plaintiff on 22 March 2010 at 6.05 p.m. (Exh. P6). From then on misery sets upon the Plaintiff, so the Plaintiff claims.

[8] On the day that he collected the car, the Plaintiff complained to the 1st Defendant's Representative, Mr. Micheal Ong Heng Lee that the car was wobbling and the steering was pulling to the left side.

[9] 1st Defendant's representative, Micheal Ong Heng Lee told the Plaintiff to use the car for the first 100 km and later to bring it to the service centre in Taiping.

[10] On 14 April 2010 the Plaintiff brought the said car to the service centre in Taiping. The 1st Defendant checked the car and told the Plaintiff that the wheel alignment and wheel balancing were out of specification. Alignment and balancing of the wheels were then carried out. However when the Plaintiff drove the vehicle, he experienced the same problem. He complained again to Micheal Ong Heng Lee. Mr. Micheal Ong Heng Lee told the Plaintiff to continue using the car for few days.

[11] On 7 May 2010 the Plaintiff complained again to Micheal Ong Heng Lee. The Plaintiff again told to bring the said car to the service centre in Taiping. On 8 May 2010 the Plaintiff brought the car to the service centre in Taiping. After checking, Micheal Ong Heng Lee told the Plaintiff to use the car for 5000 km.

[12] On 30 May 2010 when problem became worse the Plaintiff brought

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